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Investment strategy about a few spare quid?

My mother has about 20,000 pounds in her current account.
She doesn't want to get rich from it but she does not need the money now, so any % is better than 0.
We looked into surfing the combinations (put 2000 in tsb, 5000 in tesco, 1000 in...) you know, ride the introductory offers to get the most % but that's too complicated.
She will accept absolutely ZERO risk.
She might need the money so she's happy with losing the % if she has an urgent need but no penalties.

What do you suggest? I'd prefer direct mentions of brands and products, if that is possible...

Of course, I realize this is free advice on a forum and any actual investment we choose to make is under our own will and full understanding and responsibility.

Comments

  • Neil_Jones
    Neil_Jones Posts: 9,257 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If you can "wait" a bit then best solution is probably either the Secure Trust Bank 180 day notice withdrawal, for 1.65% or maybe a 1 year fix at 1.9% with Shawbrook.

    Alternatively easy access solution is either the Ulster Bank at 1.25% or Santander's 123 account (1.5% and cashback on some bills but has £5 monthly fee).
  • ColdIron
    ColdIron Posts: 9,536 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    How about a Santander 123? 1.5% (1.2% after the £5 monthly fee). Easy access and only a couple of easy prerequisites to satisfy
  • eskbanker
    eskbanker Posts: 33,380 Forumite
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    DraxDomax wrote: »
    She will accept absolutely ZERO risk.
    I presume what you/she mean/s by that is no risk of capital loss, but just to reiterate the frequently-observed point on here, there is no such thing as zero risk.

    Putting her money into a sub-2% savings account with FSCS protection does indeed ensure no (unrecoverable) capital loss, but with inflation running at 2.6% the value of that pot is guaranteed to decline in real terms.
  • eskbanker
    eskbanker Posts: 33,380 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Neil_Jones wrote: »
    easy access solution is either the Ulster Bank at 1.25% or Santander's 123 account (1.5% and cashback on some bills but has £5 monthly fee).
    Anyone using the terms 'Ulster Bank' and 'easy access' in the same sentence (and taking it literally) really ought to read this thread! :)
  • DraxDomax
    DraxDomax Posts: 43 Forumite
    Seventh Anniversary 10 Posts Combo Breaker
    Yeah, I am aware of the inflation problem :/
    Let's call it loss reduction method rather than actual profit.

    What else can she do with 20k that can give her an edge over inflation?
  • Zola.
    Zola. Posts: 2,204 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    You really have two main choices.

    - Accept the bank's best interest offer

    - Invest it in a multi asset fund and let it do its work over time.
  • Neil_Jones
    Neil_Jones Posts: 9,257 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    latest inflation figure is 2.6%, nothing long term will beat that at the moment, the only things that get anywhere near close are the current accounts (Nationwide for one, 5% on £2.5k and Tesco 3% on up to £6k to name another) and probably the regular savers (some at 5% but remember the calculation "issue" with these) and the 5yr fix currently at 2.5%.

    Beyond that, short of investing as above, not a lot else you can do but even that's not guaranteed.
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